STEC is trumpeting a $120m supply deal to a large enterprise storage customer - EMC, HP or IBM, we reckon - emphasising it's virtually the only solid state disk supplier in town for enterprise hard drive arrays.
STEC expects that revenue from the sale of its ZeusIOPS hard disk drive replacement SSDS will exceed $220m in 2009. In …

SSD cheaper than HDD?

Not!

You postulate an STEC ZeusIOPS at $220 - that's less than most 15K rpm HDDs these days. I can't provide actual pricing, but I can confirm that a ZeusIOPS costs a multiple of the cost of an 15K HDD, not a fraction. You might want to adjust and revisit your maths.

The pricing above would suggest 2,200 ZeusIOPS shipped this year ($220m/$10k) which is a rivial loss to FC HDD suppliers if there is a 1:1 replacement ratio. A 10:1 HDD replacement ratio would say 22,000 fast HDD sales were lost - which is still relatively trivial. A 100:1 replacement ratio would mean 220,000 HDD sales were lost - which starts looking interesting.